Detroit-based Lakeshore Global Corp. won’t get to keep $60 million worth of Detroit Water and Sewerage Department contracts despite efforts to distance itself from progenitor company Lakeshore TolTest Corp., which is now in Chapter 7 bankruptcy.

The department’s general counsel said Lakeshore TolTest was not eligible to receive the award in the first place and so it cannot be re-assigned to Lakeshore Global.

The Board of Water Commissioners first approved two three-year sewer lining and repair deals each worth $30 million each with Lakeshore TolTest April 23, and a follow-up reassignment of those two awards went to Lakeshore Global.

Lakeshore Global, a defunct legal entity revived by Avinash Rachmale in 2013 after he was replaced as Lakeshore TolTest CEO by Grant McCullagh, was to assume those contracts as part of a plan to part ways with LTC management.

Competitors Inland Waters Pollution Control Inc. and Blaze Contracting Inc. of Detroit both protested, saying Lakeshore Global didn’t deserve consideration, but the board in a special meeting Friday denied both protests.

The denial of the protests won’t help Lakeshore Global, though, since DWSD Chief Administration and Compliance Officer/General Counsel William Wolfson had already found the previous awards were invalid because a financially insolvent Lakeshore Toltest, which filed for Chapter 7 bankruptcy on May 2, wasn’t eligible to bid. LTC, based in Detroit until a few months ago, filed its bankruptcy petition at U.S. Bankruptcy Court in Delaware.

The protestors had hoped to restart the bid process, or have DWSD review the bids further. But DWSD instead will likely approve its next-best offer — by Roseville-based Lanzo Cos. Inc. — at a future meeting.

Rachmale could not be reached for comment at Lakeshore Global. Gerard Mantese, partner at Troy-based Mantese Honigman Rossman and Williamson PC and Rachmale’s attorney, said the bankruptcy should not affect Lakeshore Global.

“Lakeshore Global firmly maintains that all procedures were followed and that these agreements are properly awarded to Lakeshore Global,” he said.

Inland Waters attorney Michael Jacobson at Southfield-based Jaffe, Raitt, Heuer & Weiss PC said even with Lakeshore out of the picture, the bidder review was flawed on both contracts and the board seemed determined “come hell or high water” to reach a foregone conclusion.